NTPC drops plan to exit BHEL JV, govt forms panel to revive it

After securing the board approval last year to exit NTPC BHEL Power Projects Pvt Ltd, the state-owned power generator has now shelved its plan to turn its back on the loss-making joint venture company. The development comes in the wake of the ministry of power setting up a committee to explore ways to infuse life into the struggling equipment maker for power plants. Bharat Heavy Electricals Chairman and Managing Director Atul Sobti heads the panel. “We are no more pursuing that plan of shelving the JV. If need be, we will put more equity into it,” an NTPC source said. The two companies have Rs. 50 crores each as equity invested in the joint venture. “NTPC wanted BHEL to acquire its 50% stake in the JV, acquire all the assets and liabilities and absorb all the employees,” another source familiar with the development had told Moneycontrol recently, adding the company had little revenue visibility after 6 months and hence would need a fresh injection of new orders or a new blueprint to sustain itself. ref: http://www.moneycontrol.com/news/business/ntpc-drops-plan-to-exit-bhel-jv-govt-forms-panel-to-revive-it_8546061.html